Winsted’s Dale Martin: Centrella case leads to ‘loss of public trust’ in town

Winsted Town Manager Dale Martin at a Board of Selectmen meeting Tuesday. Martin spoke about the arrest of the town’s former finance director, Henry Centrella, during a Torrington-Winsted Rotary Club meeting earlier in the day.
Mercy Quaye—Register Citizen

WINSTED >> During the Torrington-Winsted Rotary Club Luncheon Tuesday afternoon, Winsted Town Manager, Dale Martin, spoke about the town financial issues and tried to address residents’ confidence in the town.

On Friday, Winsted’s former finance director, Henry Centrella, was arrested on five counts of larceny. Through an extensive investigation, detectives discovered Centrella allegedly used his illegally-acquired money to fund his second life with his Floridian mistress.

“Truly the most significant impact of this weekend’s events is the loss of public trust in Winsted,” Martin said.

Before discussing the torrid details of Centrella’s arrest this weekend and the town’s current financial state, Martin discussed his own former position as city manager in Davison, Mich.

According to Martin, political banter led to his termination. After he refused to arbitrarily fire the city’s public works director, the elected officials let him go.

“I had the support of the community,” Martin said. “My pledge to the people of Winchester and of northwest Connecticut is that I will continue to strive to do the right thing, no matter how difficult that choice is.”

Before an audience of about 50 Rotarians, Martin said the wrong-doings of the former finance director started to come to light early 2012.

“[That’s when] we started to have some inkling of what was going on,” he said. “It pretty much came to a head last November.”

He said he and the town’s attorney, Kevin Nelligan, were called into a meeting with a forensic auditor who had noticed a few discrepancies. These inconsistencies in the town’s financial records led to Martin suspending Centrella Nov. 9 of last year.

“I think he knew what was going on for a while,” Martin said. “I think he was aware that the hounds were on his tail.”

Martin said one irregularity that was a red flag for him and the finance department was a $100,000 transfer from the Soldiers Monument Fund to pay for water and sewer bills.

“That was the loose thread on the sweater that I saw,” Martin said.

He told the Rotarians that Centrella was well respected and that after his suspension many people still had their doubts.

“I don’t think it was until they uncovered the component that he was falsifying the W-2s...that opened up their eyes,” he said.

The W-2 scheme was discovered by internal town staff earlier this year.

“This is something that a few of us in town hall have been carrying around for almost a year now,” he said. “But I’m confident we’ll turn the corner.”

The long-term ramifications of Centrella’s actions include a shortfall of cash in the town’s general fund. Martin points out that Winchester’s financial downfall is not a matter of an underfunded budget.

The town’s budget is expected to be fully funded by taxpayers. According to Robin Manuele, the mill rate increase has not negatively affected the steady flow of tax payments. However the town is quickly running through its summer cash flow from tax collections and will have to wait until January for another boost of income.

“This December will be a challenge,” he said. “But I think we’ll make it.”

Martin said that town’s saving account has been affected the most from Centrella’s alleged embezzlement.

According to him, a town with a $10 million dollar budget should have 15-20 percent of its budget in a fund balance. Martin said the last audit measured the town’s fund balance at $150,000 – 0.3 percent of the budget.

“The town had plenty of money [at one point]. The town was reasonably well off,” he said. “But that’s gone.”

The Rotarians questioned the town manager about Winsted’s strategies for regaining public trust, checks and balances, job creation, recovery and dealing with the town’s current issues

Martin said he thinks the town is heading in a good direction with hiring new public works and finance directors. He also said there are fidelity bonds and other insurance claims against Centrella which will grant the town a return of some of what was lost.

About the Author

Reporter Mercy Quaye covers statewide breaking news for The New Haven Register, The Middletown Press, and The Register Citizen. Reach the author at mquaye@registercitizen.com
or follow Mercy A. on Twitter: @Mrs_WriteNow.